Plexus (PLXS) Renews Shareholder Rights Plan with 20% Ownership Threshold

August 29, 2008 7:37 AM EDT

Plexus Corp. (Nasdaq: PLXS) today announced that its Board has adopted a shareholder rights plan, replacing a similar plan that expired on August 12, 2008. The shareholder rights plan includes the declaration of a dividend of one preferred share purchase right on each outstanding share of the company's common stock. The issuance of the rights will be made on September 26, 2008, to shareholders of record as of the close of business on September 12, 2008.

Under the new plan, the rights will be exercisable only if a person or group acquires 20% or more of the company's common stock or announces a tender offer, consummation of which would result in ownership by the person or group of 20% or more of the common stock. The previous plan included a 15% threshold before rights would be exercisable.

The rights are designed to enable the company's shareholders to realize the full long-term value of their investment and to provide for fair and equal treatment for all shareholders in the event that an unsolicited attempt is made to acquire the company. The plan is intended to provide the Board with sufficient time to consider any and all alternatives to such an action and is similar to plans adopted by many other public companies. The plan's adoption is not in response to any specific effort to acquire control of the company, and the Board of Directors is not aware of any such effort.

Plexus Corp., together with its subsidiaries, provides contract electronic manufacturing services to original equipment manufacturers and other technology companies in the United States, Asia, Mexico, and Europe.

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